Bloomberg Surveillance · Friday, July 24, 2026
The discussion explores whether a more volatile market and world necessitate more volatile Federal Reserve policy, with less forward guidance and the potential for rates to fluctuate meeting-to-meeting. This shift could mean each Fed meeting is 'live,' with policy decisions dependent on incoming data, potentially reintroducing a more traditional, less communicative approach.
“If it's a more volatile market and it's a more volatile world, does it make sense for FED policy to be more volatile as well, in terms of not just forward guidance to the lack thereof but also for them to be able to kick up rates one month and then take them down another month.”
“Yeah, I think that might be where we're headed, right, with that lack of Ford guidance, lack of commitment to a path forward, they want to be nimble and maybe that's a good thing, right. A lot of people think this is a big shift. We've had J. Powell for a long time, for eight years, who was very clear in his Ford guidance, very communicative, but he really was the one that set that precedent.”
“We haven't always had a FED that is this communicative. Then we've gotten used to and so we might be going back to this. Every meeting is a live meeting, depending on what needs to be done.”